Last updated: May 08, 2024
Caesars Entertainment contends with Bally’s and Mohegan for the operation of its Windsor casino in Ontario, as the Ontario Lottery and Gaming Corp. mulls bids. The decision, expected in Q3 or Q4, could reshape Caesars’ strategic footprint, potentially impacting its profitable managed casino division. Caesars’ loyalty program and iGaming expertise position it as a front-runner in the competitive license renewal.
Bally’s (NASDAQ: BALY), Mohegan Gaming & Entertainment, and the Mohegan Tribe of Connecticut are reportedly considering bids for the operating rights of Caesars Windsor from the incumbent as well as the regulatory body that owns the casino, Ontario Lottery and Gaming Corp.
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The Ontario Lottery and Gaming Corp. is evaluating bids from the aforementioned trio to operate the Windsor casino, according to people with knowledge of the situation who spoke to the Globe and Mail on condition of anonymity. The newspaper asked for comments, but neither the gaming companies nor the regulatory agency responded.
The operator of the Windsor casino may receive a decision in the third or fourth quarter from the Ontario Lottery and Gaming Corp. The new operator would assume control of the venue in 2025 if Caesars were to be replaced.
CEO Tom Reeg, who is currently in charge of the Caesars, stated that foreign prospects would need to be “stupendous” for the combined company to consider expansion outside of the US when Eldorado Resorts announced plans to acquire the old Caesars in 2019.
The operator of Harrah’s has since shelved plans involving non-domestic markets. Caesars Windsor, on the other hand, is an alternative. It is undoubtedly near the US and plays a significant role in Caesars’ extremely successful managed casino business. This division manages gaming establishments for other owners, such as Native American tribes and the Ontario Lottery and Gaming Corp.
Furthermore, since Caesars Windsor is the operator’s only land-based venue in Michigan, it’s the best substitute for the commercial casinos in Detroit.
Windsor and the province as a whole might suffer if the Ontario Lottery and Gaming Corp. chose to take a different course. No company can match Caesars’ level of brand recognition, even though Bally’s and Mohegan have significant operations across the US and, in the case of the latter, internationally. Many people believe that element is essential to revitalizing Windsor and drawing more tourists to the city.
There are still some intriguing things to think about. The Ontario regulator faced criticism in 2018 after granting Mohegan two permits for casinos close to Niagara Falls, even though Caesars had promised to invest more money to improve those establishments.
Rebranding the Windsor casino would cost the new operator nearly $60 million if the Ontario regulator fired Caesars. Mohegan and Bally’s can both afford it, but that doesn’t mean their operators will be as successful as Caesars.
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According to the Globe and Mail, regulators are likely to take that into account because the casino provides 2.5% of Windsor’s yearly budget.
Relatedly, the operator’s skill with iGaming and sports betting, along with Caesars’ largest loyalty program in the business, are seen as advantages over Windsor casino rivals. According to the current scuttlebutt, Caesars is actually in the lead for the Windsor license.
Marilyn Chavez is an associate researcher at the Missouri University of Science and Technology, where she studied the mathematical probabilities and aspects of casino games like slot machines. She’s written several case studies which have been published by multiple problem-gaming institutions to help spread awareness about the dangers of online gambling and gambling addiction. She also presented a 2019 Ted talk on the topic of gambling among minors.
